Iran rations its housing construction loan to National Housing contractors above 65 percent completion

Iran's banking network raised its housing construction loan by 200 million tomans to a ceiling of 850 million tomans, but restricted eligibility for the revised facility to contractors building on 99 year state land, and only those whose projects have passed 65 percent physical completion. Donya-e-Eqtesad reports that the loan itself covers the cost of less than 30 square meters of construction.

The rationing leaves out a wide range of housing suppliers: builders investing in worn urban districts, private firms ready to produce rental housing, and other private developers who urgently need bank credit to pre purchase materials in the face of construction cost inflation.

The National Housing scheme began in 1400 with a pledge to build 4 million owner occupied units on 99 year land within four years. Since then only about 600,000 units have been under construction by state contracted builders. More than five years on, only about 30 percent of the units being built have passed the 65 percent completion mark, and roughly 30 percent of projects remain below 20 percent progress.